What Is ‘Isolated Margin’ versus ‘Cross Margin’ in the Context of Perpetual Futures Trading?
Isolated margin means that only a specific amount of margin is allocated to a single position, isolating the risk. If the position is liquidated, only that allocated margin is lost.
Cross margin, however, uses the entire available balance in the futures account as collateral for all open positions. This allows positions to withstand larger losses but risks the entire account balance.
